Lloyds, RBS Avoid Need to Raise More Equity to Bolster Capital
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Lloyds Banking Group Plc and Royal Bank of Scotland Plc, Britain’s two biggest state-owned lenders, won’t have to raise additional equity to help plug a 25 billion-pound ($38 billion) capital shortfall among the country’s banks.
The lenders plan to raise capital required by the Prudential Regulation Authority by shrinking their balance sheets and through other previously announced measures, according to separate statements today. RBS, based in Edinburgh, and London-based Lloyds both said they don’t have any plans to sell contingent capital securities, or CoCos.